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CommexFX welcomes the Diwali 2014 celebrationsWith the return of autumn we once again welcome the festival of lights known as Diwali, a celebration centred in the far east of Asia but acknowledge worldwide. Also referred to as Deepavali this ancient Hindu festival signifies the victory of light over darkness, knowledge over ignorance, good over evil and hope over despair.

CommexFX is happy to once again welcome the upcoming Diwali celebrations set to take place on the 22nd and 23r of October as dictated by the Hindu lunisolar calendar across Asian countries including India, Nepal, Sri Lanka, Malaysia, Singapore and Fiji among others.

With our many international clients at CommexFX we take international celebrations as importantly as local ones, and are always happy to join in on our clients’ joy. Diwali being one of the biggest events in Asian countries it is an important time in which both spiritual offerings and joyous celebrations take place.

Diwali falls on the darkest new moon light of the Hindu lunisolar month Kartika. In the Georgian calendar the event is always between mid-October and Mid-November slightly varying in dates between different countries where the occasion is a national holiday.

Diwali which is internationally known as the ‘festival of lights’ will be marked by celebrations, illuminated lights across countries which celebrate the event, and family and friends’ gatherings. From shopping, to gift exchanging to storytelling Diwali is a time where all types of bonds, like spouses, siblings and friendships are attested in the different days of celebrations.

Prayers are offered mainly to Lakshmi the goddess of wealth by those who are spiritually bound to the festival, and celebrations take place across countries which celebrate the event including illuminated lights from houses and hallmarks and a display of fireworks.

This great celebration is marked by millions of lights shining on housetops, outside doors and windows, around temples and other buildings in the communities where it is observed, creating magnificent scenery and a bright atmosphere. On Diwali night, skies are splashed with the colours of fireworks leading to family and friend gatherings over food and sweets.

During this cherished and blessed period CommexFX would like to send warm wishes for a Happy Diwali to our clients all across the globe.

All NEW CommexFX live account holders will be able to reply to new questions every day, where the fastest person to correctly reply to the question will receive the prize of $50 in his trading account.

Simply find a new question on our Facebook page every day and reply in the comments section entering your NEW CommexFX live account number and your reply.

*Terms and conditions apply One entry per household and per IP. CommexFX reserves the right to track and enforce the previous condition by using several tracking methods. The first person to reply correctly wins 50 dollars. Only NEW CommexFX live account holders can enter the competition. To participate daily in the competition you have to refer 2 friends and post your CommexFX live account ID, along with your reply and the NEW CommexFX live account ID of your friends. Your CommexFX live account number has to be provided with the reply for a chance to win. To withdraw the money you need to make a minimum of two trades on your NEW CommexFX account.

Contracts For Difference are leveraged derivative products and tradable instruments that reflect the movements of their underlying financial assets. A CDF is essentially a contract between two parties, commonly referred to as “buyer” and “seller” to exchange the difference in value of a financial instrument between the time at which the contract is opened and the time it is closed.

At CommexFX we offer you a variety of CFD instruments available via our state-of-the-art MT4 trading platform.

Advantages of CFD trading with CommexFX

Trading without actually purchasing the asset in questionA variety of instruments to choose from: energy futures, major indices and agricultural commodities.3 markets in 1 platform- Trade CFDs, Forex and Spot metals on the same MT4 accountLow-cost and low-margin trading

As a trader about to indulge in FX trading, you should have a range of order types available to you. CommexFX is committed to offer all its clients the best trading conditions possible and our Order Types are no exception.

market order Order TypesA buy/sell order at the current market price. This type of order can be used to enter or exit a trade.Market orders should be used with care due to the unexpected volatility of some markets. For instance, there may be a difference between the price seen at the order time and the actual price of the transaction. This is due to slippage- the difference between the expected price of a trade, and the price the trade actually executes at. Slippage results in either losses or gain of several pips.limit order Order Types

An order to buy or sell at a certain limit. Limit orders can be used to buy a currency below the market price or sell a currency above the market price.When buying, your order is executed at a time when the market falls to your limit order price. When selling, your order is executed at a time when the market rises to your limit order price. There is no slippage with limit orders.stop order Order Types

An order by which you buy above the market price or sell below the market price. They are most commonly used as stop-loss orders to limit losses if the market moves contrary to what the trader had expected.A stop-loss order will sell the currency if the market falls below the point set by the trader.oco order Order Types

The One Cancels the Other (OCO) order is used when placing a limit order and a stop-loss order simultaneously. If one of the orders has been executed, the other is automatically cancelled, allowing the trader to perform a transaction without monitoring the market.If the market falls, the stop-loss order will be executed, but if the market rises to the level of the limit order, the currency will be sold at a profitExample of an OCO Transaction:

Buy: 1 standard lot EUR/USD @ 1.3228 = $132,280Pip Value: 1 pip = $10Stop-Loss: 1.3203Limit: 1.3328 This is an order to buy US dollars at 1.3328 and to sell them if they fall to 1.3203 (resulting in a loss of 25 pips or $250) or to sell them if they rise to 1.3328 (resulting in a profit of 100 pips or $1,000).

Here is another example:

The current bid/ask price for US dollars and Canadian dollars is USD/CDN 1.2152/57 meaning you can buy $1 US for 1.2152 CDN or sell 1.2157 CDN for $1 US.

If you thought that the US dollar (USD) was undervalued against the Canadian dollar (CDN) then you would buy USD (simultaneously selling CDN) and wait for the US dollar to rise.

You are buying US$100,000 and selling CDN $121,570. Your stop loss order will be executed if the dollar falls below 1.2147, in which case you will lose $100.

However, in our example the USD/CDN rises to 1.2192/87. You can now sell $1 US for 1.2192 CDN or sell 1.2187 CDN for $1 US.

Because you entered the transaction by buying US dollars (buying long), you should now sell US dollars and buy back CDN dollars to realize your profit.

You sell US$100,000 at the current USD/CDN rate of 1.2192, and receive $CDN 121,920 for which you originally paid CDN $121,570. Your profit is $350 Canadian dollars or US$ 287.19 (350 divided by the current exchange rate of 1.2187)

China, does not have a free market economy, hence remains an unusual place to start a business. As a result, the political structure is closely tied to economic growth. The communist government in China, in one way suppresses development, but also fosters, and sponsors the growth of Chinese industry, and its expansion overseas. This in turn protects domestic industries, which gives it an edge as a nation over the others in the BRIC category.A persistent difficulty for Forex brokerages is that China is more or less impermeable to western companies as the entire business methodology in China is in stark contrast to other global models. Strict restrictions on non-domestic companies operating for forex trading China, seizing financial assets of companies participating in JV’s with Chinese organizations, and blocking bank accounts of foreign companies operating in Chinese territory, makes it a hindrance for growth, sometimes.

The Chinese government, and regulators view forex as a highly leveraged product which carries too much exposure. Specifically, in China, when we look at the huge population, huge losses in savings can end up in a crisis that would shake social stability. Chinese people have that inherent risk-taking attitude in their blood, and also have a lot of savings, due to lack of social welfare. Hence, the risk of losing out precious money, in lieu of forex trading, is very real, and dangerous.

The government, however, also considers forex as a more “fair game”. With the huge market, clients can become better off without market manipulators, but opening up to OTC is a huge step for them, both in forex and in futures.

A recent trend shows that more companies are trading goods and services with China, and pricing it in yuan instead of dollars. The fourth quarter of 2013 saw a 30% increase in yuan trade settlements, up from the second third quarter. Although the currency remains tightly controlled, the Chinese government and many fund managers are betting on the yuan becoming the new yen in Asia. According to the Bank, dollar activity in the 4th increased by just 2%, while euro,pound and yen trade, all declined.

Last year, China’s merchandise trade exceeded $4 trillion, making it the world’s No 1 trading country. Total cross-border yuan settlement was 5.16 trillion yuan, up 61% year on year.

Current Foreign Exchange Institutions.

China’s Forex market is comprised of 2 parts. The inter-bank or wholesale market and the retail market.

Major parties involved in the forex market are:

1) CFETS which functions as a trading platform for inter bank markets, and is responsible for clearing the market and for providing the supervisory authorities with market information2) PBOC and SAFE as regulatory authorities3) Designated FX banks and non-banking financial institutions and non-financial enterprises authorized by SAFE to engage in foreign exchange business4) The enterprises that can earn and spend Forex.5) Individuals who have forex trading needs.

China’s FX market is limited in product scope mainly to spot trading in US dollars. For a long time since its establishment, the inter-bank market offered spot transactions only until August 2005 when inter-bank forward and swap were introduced.

The two factors that most seriously constrain development of China’s FX market are the compulsory FX settlement system and the rigid exchange rate regime. Specifically the rigidity in exchange rate imposes limits on the growth and diversity of the FX market. But at the same time, allowing more flexibility in the exchange rate requires a broader, more diversified, competitive and efficient market platform on which the forces of supply and demand can determine the RMB value of foreign currency.Development of the FX market provides the needed foundation for any move toward greater exchange rate flexibility.

Confidence is the key to success. The Foreign Exchange Market is a decentralized market that is meant for trading currencies. It is the Forex that determines the value of currencies. The magnetic power of money has driven the investors to invest in stock markets. Earning money through equities is not an easy task. Huge amounts of researches and oodles of discipline, patience and confidence are required. You need to have a comprehensive idea of the market. Looking at the volatility of a market, the investors are in a constant dilemma whether to invest or not. As a result of market volatility, the investors lose faith in the stock market and shut themselves off from stock markets. Ideal investors must know how to handle this volatility with confidence. The world of the stock market is a competitive market requiring far sightedness and years of research. People who are not confident cannot survive through the ups and downs of the marketing trends.

Reflecting on the winningsFor efficient trading you need to be confident. Efficient trading habits help to build up confidence. In a way confidence and perfect trading habits are directly proportional. Low level of confidence can cause a dent in one’s trading performance. Reflecting on one’s own winnings can make one a winner. A winning trade can be used as a tool to invite further wins. It is mandatory to reflect on one’s own wins . It is necessary to ponder on the factors that lead to the win. Important factors must be jotted down in a trading journal to record the trading policies that triggered the win. Trading techniques must be learned by heart and this is only possible when one trades with small amounts. Trading skill if acquired will make one confident in trading.

Progress from smaller amounts to bigger amounts If you are a budding investor, you are supposed to trade with small amounts of money to acquire the trading skill. Only then will it be possible to trade with bigger amounts. Trading skills, if acquired, will enable you to gain confidence.

Failures are the pillars of successLosing trades are the best teachers that teach the trading skills. Disappointment after a losing trade must never be an obstacle in the path of successful trading. A simple losing trade must not be mixed with major failure. It must lead one to a series of winning trades. To make this possible one must reflect on the reason behind the loss. Proper record of the losing trade must be maintained in the trading journal so that the mistakes do not get repeated in near future. This is the only through which minuses can be converted into positives.

Act like a Super traderBelieving is doing. If one is confident enough to achieve success, then no one can stop him/her from winning. Acting like a matured trader is important. Brooding over one’s losses and wins is an absolute passé. A trader must move away from his computer after winning and losing trades.

MetaTrader 4, also known as the MT4, is the cutting-edge online trading platform designed to facilitate forex trading for all types of traders. The MT4 combines an accessible, user-friendly interface with a wide range of powerful functions, making it a highly flexible platform and the preferred choice for traders world-wide.

With the MT4, CommexFX clients can access a whole wealth of cutting edge features, such as live-streaming prices, a wide range of charts, ability to place order types and complete management of personal accounts. It also provides a comprehensive set of Technical Analysis tools, and due to its MQL4 programing language, enabling the use of Automated trading robots (EAs).The CommexFX MT4 platform is compatible with all our Mobile Trading Applications.

Benefits of trading with the CommexFX MT4 platform

User-friendly interface – enabling new and experienced traders to master the platform and trade the markets to their best advantage.Multilingual support -traders can select their desired language with a range of 32 languagesReal-time trading market ordersPlace/Modify/Delete Stop Loss and /or Take Profit OrdersTrailing stops - for algorithmic management of Stop Loss orders.Pending orders -including Buy Stop, Sell Stop, Buy Limit and Sell Limit.Expert Advisors (EAs)- enabling traders to automate their trades with an automated trading robot that best suits their trading style and strategies. The MQL4 programming language allows the easy creation of EAs and customized technical indicators.Multi-account management - users can access their account information including account balance, trading history, personal details, as well as password retrieval.Advanced charting capabilities – enable traders to apply all technical aspects of Technical Analysis.Advanced communication tools – brokers can post messages and communicate with their clients in real time.High security - platform that encrypts the data between traders and their broker’s server with a 128-bit key. The trader’s IP address is also completely concealed providing an extra level of anonymity and security.Operating Systems variety – installation is completely compatible with the Microsoft Windows operating system including Windows 7, Vista, XP, 2000 and 98 as well as Linux operating system.

Trading is neither easy nor difficult; it is an art which requires continuous planning, setting and sticking to goals, persistent thinking and tons of discipline. The trick is to study the market movement, the highs and lows, and to know when to cut your losses and make a killing!The following are 5 tips which you should incorporate in your everyday trading plan to reach the level of trading you wish to achieve.

They are:

Keep the thinking process simpleThe more you trade the more risk you manage with your hard-earned money; and the more complicated it can become for you. Due to this, the trading strategy you employ must be disciplined and strict in a systematic way, enabling you to achieve certain professionalism in your trading.The best advice is to invest only money you can afford to lose. So if you decide to invest $2000 , then bear in mind that you could lose this. Be smart; arm yourself with knowledge and tons of patience! Slowly and surely, study the market movement, place your trades and cut your losses as soon as you can. This way your approach to trading becomes a disciplined one. Whatever money you have earned during course of trading needs to be put back into the account itself. This way, you give a minimum lock in period for the capital base to grow.

Stick to major currenciesIt is better you trade with two to four sets of currencies to discover the joy of trading, than sampling 40 different currencies which will only confuse you. If you trade with major forex currency pairs, the markets are more liquid and less volatile for you to succeed in maximizing your profits without too much risk.

Keep minimum number of trading stepsKeep a trading journal in front of you. And record the transactions which you perform on a daily basis. Make a track of losses which you could have avoided, had you applied alternative trading strategies.

Keep to three or four basic trading strategies and stick to these. If you include too many trading trends and ideas they can both drain you and confuse you. It is the quality and not the quality of trading principles which will eventually work in your favour..

Know your maximum dollar risk per trade, do not exceedIdeally you would need to deposit at least $5000 in your live trading account to get exposure to big position sizes. The money you deposit needs to be utilized optimally. At the same time, avoid risking too much of capital. You need to evaluate how much money you are comfortable with losing out in one single trade. Once you have analyzed everything, follow a disciplined approach to leave losses to the comfort zone. Never exceed that particular amount on any given day. You can make your earnings better by minimizing your potential losses.

Price action movementPrice action is a technical analysis and is the simplest strategy which is recommended for beginners to learn. These are feel good signals of the market where you need to sell the currency. There is an indicator to buy currencies as well. Price action strategy is tried and tested and follows a scientific approach to trading. You can incorporate this in your daily trading plan.Follow up these up and become a successful savvy trader from day one!

Traders either loathe them or worship them, but, if the truth be told, demo accounts are used by brokers to entice traders to open live accounts.

Conventional wisdom suggests that demo accounts are a safe way to sample a risk-free trading environment, since we all know that plunging into the deep end and placing orders with no prior experience can result in a loss of large sums of money.

Demo accounts are supposed to combat inexperience and trading naivety, but do they?

The main factor of Demo accounts is that they do not trade with real money. This lack of risk would be considered an advantage in itself, but it does not make the trading experience realistic, it makes it emotionless, you don’t care if a position goes well or if you lose all your trading capital. There are no consequences for your actions, you don’t bother to learn from your mistakes and there is no disincentive to trade in a particular way. You don’t get to rationalize in real money – there’s no impetus to cut your losses and run on with your profits, nor is there any means of truly highlighting the riskier strategies from those that are more cautious. With a demo account, there’s no real accountability, which can and does hamper the trading experience.

Overconfidence, a detrimental factor- demo traders enter the financial markets with unrealistic balances in their account of up to $100,000, possibly an amount bigger than they would ever have in a live account. They will hold large losing positions which would be impossible to float on a live account with their own capital. This big amount of virtual money accessible to the demo trader is highly unrealistic; imagine if he only wants to trade a mini or a micro account? It will encourage the demo trader to take on riskier trades than he would normally do in a live account with real money, developing excessive risk trading into a habit which will be disastrous when the demo trader becomes a live trader!

Limitations of a demo account-their impact on trading strategy and style is actually much less than it could be. Demo accounts are often inherently limited, either in functionality or in the markets they represent. Market data is often delayed, as it is fed through the demo trading platforms/servers, eliminating much of the intricate features of trading, such as news announcements and live market events, this somehow prevents a demo trader from becoming an accomplished trader ready to take on the real world of FX trading!

Demo psychology-demo trading does not accurately reflect the true psychology of a live trader as trading with virtual money will not allow you to have the real gut feeling of making trading decisions on the spot and under extreme pressure that trading with your own hard earned money entails. With no real money at stake, the trader’s understanding of the underlying risk is actually limited or impaired. Alternatively, when you do trade on a live account, you can clearly see the need for discipline and risk management, elements which are not deemed necessary when trading with virtual money.

Conclusion-few will argue that a forex demo account can be undeniably useful in developing and mastering a certain trading strategy but unless the trader experiences the difficulty of making trading decisions involving real money and experiencing the pain of losing funds, he will not fully understand, much less avoid, the real risks of FX trading!

The financial market has become popular due to its vitality and accessibility. But when it comes to trading in different currencies, traders and investors need to grasp the best methods for forecasting currency trading and forex spot rate.Currency trading forex spot rate is the exchange rate of currencies being traded in the financial markets.

Different methods of currency forecastingCurrency forecasting is essential for determining the forex spot rate in the trading market. Below are the two main methods of currency forecasting:

Technical analysis: A traditional market like the stock market employs this particular method to determine the currency trends of the future. This method relies on price history to predict the future trends. Technical analysis comprises many different methods, which generally rely on the price movements of the past.Fundamental analysis: taking into account different interest rates and economic reports, this method tries to draw its conclusion from numbers. This is a classic way of currency forecasting. It generally revolves around the fact that no matter what happens in the short tem, eventually all investments will have to follow economic numbers.Apart from the above mentioned methods, traders follow some other techniques for forecasting the exchange rate:

Time Series Model: As part of the technical analysis process, this model focuses on past behavior and price patterns to determine the trends in future.This model requires data made from price patterns in chronological orderRelative Economic Strength Approach: According to this approach, a strong economic environment and high growth patterns of a country is likely to attract investors into its market. Hence, this method analyzes the growth patterns of different countries in order to forecast the forex spot rate.Econometric Models: This method collects all different factors that the trader thinks are essential for determining the movement of a certain currency. This helps in creating an econometric model that is based on economic theory. But as the economy is based on different variables hence, the trader can add any factor that he thinks will influence the currency rate in the future.Purchasing Power Parity (PPP): Owing to its inclusion in different text books, this method has become very popular in the financial market. This method is based on the principle of theoretical Law of One Price that states that identical goods should have one price per country. Hence, the forex spot rate will change according to the inflation in a particular country.Relation between currency forecasting and forex spot rateDetermining the forex spot rate (exchange rate) is primary for every trading firm and market. Currency trading is all about future trends and patterns. So, it is imperative for every trader to determine the correct forex spot rate so as to reap profits in the future. If something goes wrong in currency forecasting, it would be difficult for the investor or trader to ensure better returns from the foreign market.

However, the co-relation between forecasting and exchange rate cannot be denoted in theory. There are numbers, figures, models, methods and analysis that determine their relation.Currency trading and forex spot rate are the two most important pillars of the foreign exchange market. Their correct forecasting will determine correct results and huge profits in the future.

The size of the trading account will not determine the level of success. A trader with a small trading account might be a more successful than the one holding bigger trading account. A successful forex trader might not be a full time trader. The Even small trading account might make you a successful trader. In order to attain the heights of success with a small trading account make your account grow. Parlay your trading account of small account into substantial trading account. Money hardly matters in the markets, but what matters is the logic and the objectivity with which you trade. So let your small trading account grow with some important techniques:

1. Do not bother about the size of your trading accountSome holders of small trading account are more bothered about increasing their trading amount rather than thinking about the risk management and the price action trading. This tendency pressurizes the traders to trade under compulsion which results in disaster. Traders with small trading accounts need to have patience and discipline to let their account grow.

2. Master the trading strategies with the aid of small trading accountIf you learn how to trade successfully with a small trading account, then of course you are a good trader who has mastered the art of trading. The market is not an Auto Teller Machine to give out money in quick succession. It takes time to enlarge the small trading account. Bank upon effective trading not for money. Avoid the temptations of the market and trade like a sensible trader. Once you learn the art of risk management and master the trading strategy or the price action plan, your small trading account will certainly grow.

3. Focus on trading not the trading amountDo not be repulsive towards your trading account simply because it is of small amount. Consider the present trading account of small amount worth one million dollar worth trading account. Success in trading is not dependent on the size of trading account, but it is largely dependent on your successes. How very consistent profits you are making, that is what matters. The principles for trading a small trading account and big trading account is the same. Think that your trading account carries a huge amount, only then the urgency for trading can be curbed.

4. Consistent successes at small trading account: key to gaining confidenceIt is necessary to build a track record consistently by earning consistent profits in the small trading account. This will help you make consistent profits in the trading accounts of bigger amounts. Once the track record becomes consistent, you become a confident trader.

Ways of making your small trading account grow

Master the price action strategy. Focus yourself on the processes of trading only then your money will grow.Formulate a forex trading plan which would act as a trading guide for you, recording the entries, exits, and your strategies for money management.Maintain a trading journal for tracking your own progress in forex trading journal. Maintain discipline with forex trading journal.Trading consistently can contribute towards the growth of your small trading account. Act like a disciplined trader by following the trading strategies.

Forex Price Action Analysis is an important part of trading effective. Successful traders simply trade off on the basis of price action movement. In this way trading can be thoroughly based on the price dynamics and not on the basis of indicators, advisers and robots. Trading as per the price action analysis is the rationalistic approach to trading and brings healthy returns. Such rational trading is only possible with analyzing of price movements and also the patterns of price action. You have to devise your own trading method.

The market is in constant ebb and flow. It is dynamic, liquid where the prices oscillate every time. Price action analysis in the market helps you in identifying and implementing the signals of price action or the setups. The signals of price actions can easily be benefited from. Learn how to interpret the price action or price trail then only you can become a potential and a prefect forex trader. By doing this you can gain the market edge which others are missing out. Kick off the habit of using lagging indicators for these signals can misguide you by giving you wrong entry or exit signal. You are only supposed to learn the interpretation of dynamic or raw price trail. Learn how to trade with price action strategies.

The Price action makes the whole process of trading very flexible. Master the art of grasping what the price chart is depicting. Do not oscillate like a pendulum from one technique to another. You will remain nowhere and end up becoming a bad trader. Master trading setups by finding a consistent edge.

Simplification: a key to successful tradingSimplify the things and see the magic yourself. Do not apply too many indicators to your chart for they are only meant to deceive you. Try earning profits off from the price movements. The more you simplify the things by focusing on the strategy of price action the more you will gain from the markets. Adding too many indicators will only reduce the screen areas which price action picks up. As a result of this you tend to focus more and more on the indicators rather than on price action. .

Benefits of Price Action TradingPrice action can help you in establishing as a successful trader in the long run. It will teach you the art of trading with the price action and hence trading off the price action which is raw. It provides the base and strong foundation to any trading method. Raw underlining of price movement is possible with the help of price action trading irrespective of the fact whether the system is indicator based, software based. Having a practical knowledge and trading with price action has proved immensely beneficial for innumerable number of traders. Traders are now able to understand their trading methods better with the aid of price action trading.Price action trading is an art which comes with practice. The movements of the markets can be understood with the clear concept of PAT.

Manage your money professionally. Implement on the money management plan. Mastering the skill or reward and risk will help you grow your small amounts of money into larger amounts. Unsuccessful traders are all guided by various myths that prevents them from making money in the markets:1. Focus on the pipsSome traders concentrate on pips rather than dollars. All unsuccessful traders do this. It is often found that the traders who focus on pips become less emotional about their trading and they stop weighing their trades in monetary terms. But then trading is all about investing and making money. You need to evaluate the risks that you are taking. Trading is not a game. Trading is a business where each transaction needs to be treated like a business transaction. Every trade has risks as well as reward attached to it. Trading in terms of the number of pips you gain or you lose is completely baseless. Traders trade from varied positions. Risk must be defined in terms of dollars and not pips.2. Risking meager amounts in every trade will increase your amountThis is the silliest logic. Some foolish traders believe that if they risk 1-2% on every trade then their accounts will grow. If you start trading with a very small amount and lose 4-5 trades in a series then your account will not grow. The amount you risk will appear very small in front of your losses in trade. % risk model has its own drawback. You can win all your trades in the beginning and might lose a series of trades. All your gains will be wiped out in this process. But then it has a flip side to it. It will check you from trading emotionally. So risking a small percentage on every trade will make you gains slower because it will take a long time to build up your amount if you risk less. If you risk less, you gain less and this is the logic.3. Wider stop risks equals to risking more money.Traders who believe that risks in trading will increase as a result of wider stop loss are not thorough with the concept of a forex position sizing. You should be able to adjust the position size in order to match up your risk size and stop loss placement. For stop the wider loss curtailloss curtails your position size. Adjust the position size for meeting the intended stop loss width. Widening the stop loss can reduce your trade amount significantly. If you believe in the fact that widening the stop loss will improve your trade amount then you do not understand the power of risk to reward as well as power sizing. The logic of risk to reward has immense power for the risk to reward builds the trading account consistently if you have effective edge and you know when that edge is present in the market.A good trading habit can help you in the long run to build money. For this learn the art of money management. Learn the system of price action trading in order to successfully detect successfully when your edge is present in the market. Only then the system of risk and reward will be applied and you will be able to manage your money.